2017-10-26T17:05:53-05:00 2016-12-31 946214841 Armanino LLP 50 W San Fernando St Ste 500 San Jose CA 95113 990 2016-01-01 942538615 Ronald McDonald House at Stanford RONA 6504706000 520 Sand Hill Road Palo Alto CA 94304 Annette Eros CEO 6504706000 2017-10-23 1 Lawrence S Kuechler P00233621 4082006400 2017-10-23 38.104.135.22 2017-10-23 13:38:55 PD P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 C6CDAEE9B875D4320E7F169406ABE2414F275E69 2016 2021-01-29 14:40:06Z Annette Eros 520 Sand Hill Road Palo Alto CA 94304 12098089 0 X www.rmhstanford.org X 1979 CA Ronald McDonald House is a nurturing home for critically ill children and their families. 22 21 43 5259 0 0 10911068 9035875 120418 135630 505460 361067 116449 465130 11653395 9997702 0 0 0 0 2086625 2306091 0 0 1055909 2369942 3591864 4456567 5897955 7196828 4099747 93727009 91974463 12302717 5680195 81424292 86294268 X Ronald McDonald House at Stanford creates a home-away-from-home and supportive community for families of children with life-threatening illnesses receiving specialized treatment at local hospitals. 0 0 4450028 135630 Ronald McDonald House at Stanford (The House) owns and operates the Ronald McDonald House in Palo Alto, CA. The House creates a home-away-from-home and supportive community for families of children with life-threatening illnesses receiving specialized treatment at local hospitals.See Schedule O for continuation. The change in revenue less expense from the prior year is due mainly to the opening of the organization's expanded 67 room building in 2016 as noted in Schedule O. As such, in 2016 the operating expenses increased to support this increased ability to serve more families. Additionally, the organization incurred one-time costs in 2016 related to supplies and furnishings for the expanded building. Also, included in revenue in 2015 is a one-time large gift to the Capital Campaign for the expanded operations. 4450028 1 1 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 41 1 1 43 1 0 0 0 0 0 1 1 0 0 0 0 X 22 21 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 CA X X Cynthia Semenoff Director of Finan 6504706009 520 Sand Hill Road Palo Alto CA 94304 Annette Eros Chief Executive Officer 40.00 X X 178063 0 28390 Karen BOYD President 1.00 X X 0 0 0 Scott Rodrick Vice President 1.00 X X 0 0 0 jenny Chang Treasurer 1.00 X X 0 0 0 Dan Francis Secretary 1.00 X X 0 0 0 Daniel Bernstein MD Director 1.00 X 0 0 0 Judi Rees Director 1.00 X 0 0 0 Laurie Lacob - to Director 1.00 X 0 0 0 Jim McCaughey - to Director 1.00 X 0 0 0 Anne McCune Director 1.00 X 0 0 0 JULIA ERWIN-WEINER Director 1.00 X 0 0 0 Brad Lyman - to Past President 1.00 X 0 0 0 Michael Rubenstein Director 1.00 X 0 0 0 Allison Leopold Tilley Director 1.00 X 0 0 0 Anne Lawler Director 1.00 X 0 0 0 Cynthia Lopez beverage Director 1.00 X 0 0 0 Andy Kirkpatrick Director 1.00 X 0 0 0 Melinda Litherland Director 1.00 X 0 0 0 Nellie Ling Director 1.00 X 0 0 0 Helen Wilmot Director 1.00 X 0 0 0 Brad O'Brien DIREctor 1.00 X 0 0 0 CYNTHIA MAHOOD LEVIN DIrector 1.00 X 0 0 0 JEFF SILK Director 1.00 X 0 0 0 Cheryl Cheng director 1.00 X 0 0 0 Janice Roberts director 1.00 X 0 0 0 Cynthia Semenoff Director of Finance 40.00 X 109107 0 18150 Laura Boudreau COO 40.00 X 133589 0 16148 JAY MCCULLOUGH Chief DEVELOPMENT OFFICER 40.00 X 135714 0 17372 Jeffrey Scanlan director strategic relationship 40.00 X 101573 0 5685 658046 0 85745 5 0 1 0 Colony Landscape Maintenance Inc PO Box 940 Alviso CA 950020940 one-time construction Landscaping 229341 Vance Brown Inc 3197 Park Blvd Palo Alto CA 94306 Construction Management 216052 Bright Events Rentals 145 Pearl Lane Brisbane CA 94005 tent, equipment and supply rental 139184 3 18676 601147 8416052 935816 9035875 Program Service Rev 624100 84325 84325 Room Donations 624100 51305 51305 135630 405718 405718 1368333 1381530 31454 -13197 -31454 -44651 -44651 857477 601147 562032 295445 295445 280850 125371 155479 155479 Other Income 624100 14206 14206 14206 9997702 135630 0 826197 333711 229123 26537 78051 1587028 1089641 126203 371184 55087 37823 4380 12884 172734 118598 13736 40400 157531 108160 12527 36844 -6920 -4751 -550 -1619 41906 41906 76467 76467 454696 176247 15335 263114 74461 62351 3609 8501 52509 36052 4176 12281 332337 322204 6966 3167 8373 5749 666 1958 13576 9321 1080 3175 180207 174608 3849 1750 968959 938855 20696 9408 60905 59013 1301 591 supplies - expansion 668445 641264 15113 12068 Supplies - other 468899 371943 5382 91574 Other 115478 73827 12639 29012 donor engagement and ac 81566 81566 5897955 4450028 392018 1055909 X 10960895 4617735 1249327 7595922 4774984 366361 163393 49375915 7130095 34202570 42245820 16985092 17955773 22366842 22216758 93727009 91974463 2736378 798866 7473000 4227000 2093339 654329 12302717 5680195 X 33993210 41299716 38193208 35714394 9237874 9280158 81424292 86294268 93727009 91974463 4099747 920313 -150084 0 X X 0 1 X 1 0 X 4690791 3962692 8688873 10911068 9035875 37289299 4690791 3962692 8688873 10911068 9035875 37289299 4486876 32802423 566142 679367 527242 502582 405718 2681051 463897 427095 1123112 816938 1152533 3983575 43953925 4660136 0.74630 0.80050 X Schedule A, Part II, Line 10, Explanation of Other Income: Other income - 2012 Amount: $ 6,493. 2013 Amount: $ 6,949. 2014 Amount: $ 6,915. 2015 Amount: $ 11,813. 2016 Amount: $ 14,206. Gaming income - 2012 Amount: $ 244,650. 2013 Amount: $ 194,300. 2014 Amount: $ 206,260. 2015 Amount: $ 162,850. 2016 Amount: $ 280,850. event income - 2012 Amount: $ 212,754. 2013 Amount: $ 225,846. 2014 Amount: $ 909,937. 2015 Amount: $ 642,275. 2016 Amount: $ 857,477. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 17308285 42284 1305234 450000 18205803 17677407 53337 -422459 17308285 17753760 35929 987094 1099376 17677407 15782193 40957 1930610 17753760 14125710 39110 1617373 15782193 0.50970 0.49030 0 0 44668555 6899007 37769548 634623 231088 403535 4072737 4072737 42245820 Lease contribution receivable related to donated rent 22216758 22216758 Accrued Expenses 654329 654329 X 13019380 920313 1897180 280652 3098145 9921235 76467 76467 9997702 8149404 2047264 280652 2327916 5821488 76467 76467 5897955 Part V, Line 4: The House's endowment consists of donor restricted funds established for the benefit of the House. All endowment gifts stipulate that the principal remain intact and that investment earnings be expended on House operations. The House has policies which are intended to maintain the purchasing power of the endowment assets held in perpetuity as well as to motivate real growth through new gifts. In 2016 the Board of Directors appropriated $450,000 of endowment earnings for use in operations. Part X, Line 2: The House evaluated its current tax positions and has concluded that as of December 31, 2016, the House does not have any significant uncertain tax positions for which a reserve would be necessary. Part XI, Line 2d - Other Adjustments: Special event expense 280,652. Part XI, Line 4b - Other Adjustments: Special event direct benefit costs Investment management fee 76,467. Part XII, Line 2d - Other Adjustments: Special Event Expense 280,652. Part XII, Line 4b - Other Adjustments: investment management fee 76,467. SCHEDULE D, PART VI, LINE 1E: Included in other Land, Buildings and Equipment is $3,929,560 of construction in progress related to the legacy building renovations and expansion. House Party! Dinner Gala 996402 246975 749427 6850 119395 106147 40059 177678 Golf Tournament 284315 176265 108050 11082 47288 33008 20525 1 177907 177907 1458624 601147 857477 17932 166683 139155 40059 198203 562032 295445 280850 50000 3616 30837 40918 0 280850 50000 3616 30837 40918 125371 155479 CA 1 0 1 0 1.00000 Ronald McDonald House at Stanford 520 Sand Hill Road Palo Alto CA 94304 0 NA 1 155479 X X X X 0 0 0 0 0 0 0 0 0 Annette Eros Chief Executive Officer 178063 0 0 0 0 0 9808 0 18582 0 206453 0 0 0 JAY MCCULLOUGH Chief DEVELOPMENT OFFICER 135714 0 0 0 0 0 6824 0 10548 0 153086 0 0 0 X 15111 652498 Fair market value X Toys/house goods 401 157742 Cost of comparable g X furniture and decor 26 111014 cost of comparable g X Auction items 3 14562 Cost of comparable g 0 0 1 1 Part I, Column (b): Schedule M, Line 25, Other: Donated goods received from various donors including toys and household items utilized by the House to fulfill its mission by defraying costs that would otherwise be incurred for program services. Schedule M, Line 26 Other: Donated furniture and decor received from various donors as part of the House's expansion into its new building. Part I, Line 32b: A broker is used to receive contributions of stock. Upon receipt the stock is liquidated. Form 990, Part III, Line 4a Established in 1979, the House has expanded several times to meet increasing demand for family care services. In 2017, the House successfully completed a four-year expansion campaign that more than doubled capacity and enhanced vital family-centered programming and services. The House now provides a comprehensive continuum of care for 123 families every night. The House is an approved family lodging facility covered by California Children's Services and many other State-funded and private insurance plans. Accommodations are available to families of pediatric patients aged 18 years and under who live outside a 50-mile radius of the House. Lucile Packard Children's Hospital Stanford (LPCHS) social work and self-referrals are accepted. The House requests a nominal donation of $10 per night, but no family is turned away due to inability to pay. In 2016, the House served more than 700 families overnight, totaling nearly 19,000 guest nights. Advancements in the management and treatment of complex pediatric diagnoses continue to impact demand for local accommodations and average lengths of family stay. In 2016, average stays increased from 34 days to 56 days, with 30 percent of families staying longer than 60 days. Top medical treatments accessed by families staying at the House in 2016 included: cardiology (34%), NICU (21%), hematology/oncology (11%), liver transplant (8%) kidney transplant (7%), PICU (5%), stem cell transplant (4%), OBGYN/Maternity (3%), General pediatrics (2%), and lung transplant (1%). A Home-Away-From-Home The House provides more than basic accommodations for families displaced by their children's medical crises. It is a comfortable, secure home for parents, patients and siblings to bond and engage through a comprehensive mix of creative and participatory programming designed to ease stress and allow them to focus on what matters most the health and well-being of their children. Dedicated activity rooms for toddlers, adolescents and teens offer children space to play and make friends together. An onsite classroom, computer lounges, weekly volunteer activities and extended seasonal day camps facilitate fun, learning and a sense of normalcy for patients and siblings during challenging times. Comfortable common areas, community kitchens and dining rooms, laundry and fitness facilities provide parents opportunities to relax, share experiences, and build practical routines. Daily volunteer meal service, prepared in a commercial-grade kitchen and served in the dining rooms of both buildings through the megaBITES program, offer families meaningful opportunities to spend time together and alleviates the pressures of food costs, planning and preparation on residents. The program introduces advanced menu planning options and streamlines preparation and service processes enabling corporate and community groups to deliver an average of 300 servings to families at each meal. Improved menu planning led to greater meal variety, enhanced food quality and higher meal count. Therapeutic support is available to families 24 hours a day through the innovative Family Support Services (FSS) program, facilitating positive coping and communication skills development through family welcome meetings, weekly Fun Clubs, and unlimited individual, couple, family and group sessions. FSS resources help parents, patients and siblings manage stress, build relationships and reinforce familial foundations during times of crises. House staff and volunteers ensure family rooms and common spaces are fully utilized. More than 150 volunteers provide daily support to House operations, youth activities, meal services and annualized fundraising events. More than 3,000 volunteers provide comfort and care to families throughout the year, including: - Family Support Services (FSS) - megaBITES volunteer meal program - Family Album Project photo sessions - Seasonal events and day camps - Health and wellness programs (massage therapy, haircuts, spa treatments, ect.) - Weekly shopping trips to area stores In 2016, volunteers donated more than 22,000 hours of time for an estimated value of over $632,000, dramatically reducing the need for hired staff. Additionally, 21 community and industry leaders volunteer as valuable Board of Directors members. Form 990, Part III, Line 4a Other Programs The Day Pass program offers no-cost House access to families unable to stay overnight due to capacity limitations or live nearby and do not require accommodations between 9 a.m. and 9 p.m. daily. Families may utilize House resources including activity rooms, meal services, showers, laundry rooms and fitness facilities. More than 1,200 individuals benefited from the Day Pass program in 2016, constituting a 61 percent increase in year-on-year program utilization. The Happy Wheels hospitality cart program delivers snacks, personal care items and activity kits to families in pediatric patient wards at LPCHS. House volunteers offer refreshments, small toys and interactive games to children and parents, providing needed relief and entertainment to families who spend long days isolated at the hospital at the bedside of their children. To date, more than 10,000 individuals have benefited from the Happy Wheels program and more than 50 Ronald McDonald Houses have adapted versions of this service in their own markets. A Well-Maintained Facility The House offers a trusted environment for seriously ill children to stay. The expanded campus is designed to support children with immuno-suppressed conditions due to heart, lung, or stem cell transplants. Efforts to sustain a high quality facility that recognizes the fragile medical condition of its residents make LPCHS physicians more likely to discharge patients if they know the child will stay at the House. The House also engages in green initiatives, replacing all cleaning products with environmentally sustainable alternatives and continually evaluating general operations to discover additional avenues for green integration. Leveraging Resources Approximately $396,000 of in-kind goods and services were donated to the House in 2016, offsetting program expenses and offering meaningful gifts for families. In-kind donations include event tickets, cleaning supplies, clothing, games, linens, personal hygiene items, meal services, newspapers and magazines, soft drinks, and toys for residents of all ages. The House collaborated with the San Francisco Design Center and 49 of the Bay Area's top interior designers to create unique and welcoming interiors for the House expansion and legacy building renovation. Design partners leveraged their professional networks to secure an estimated $3 million of donated goods and services to outfit a 67-room expansion and approximately $530,000 of in-kind decor and furniture donations toward the complete legacy building renovation. The property on which the 123-room campus sits is leased to the House by Stanford University for $1.00 a year. The annual donated lease amount is currently valued at $1,934,008. Relying on Community Support The House receives more than 85 percent of its operating revenue from public contributions and relies heavily on volunteers to provide hundreds of staffing hours each week. Therefore, community support is critical to House sustainability. Earned income represents less than 5 percent of total operational costs for family stays at the House. This revenue includes the nominal accommodations rate (based on ability to pay) as well as revenue generated by state-funded agencies (based on family eligibility for aid). Approximately 8 percent of revenue is sourced from McDonald's Corporation, its franchise owner/operators, and their local charity chapter. Remaining operating funds come from individuals, foundations, and corporations. Exceptional community support allows the House to offer comfort and care to substantially more families every night. Keeping 123 Families Close In 2014, the House launched a $46.5 million, multi-phase capital expansion to increase capacity and meet demands for family care services. Phase expansion efforts culminated in the opening of a 52,000-square-foot, 67-room expansion next door to the legacy building in 2016. Phase II legacy building renovations began immediately thereafter. Unveiled in spring 2017, the 44,000-square-foot, 56-room remodel established nine additional family rooms, design continuity across the two-building campus and enhanced the functional and comfortable environment. The availability of 123 family rooms significantly reduces House wait lists and anticipates a 100-bed expansion at LPCHS expected to be completed in late 2017. The House is located only blocks from the hospital, creating easy access to specialized medical teams, required treatments and emergency services. Research on family proximity during pediatric medical crises shows a measurably positive correlation between togetherness and a patient's ability to rest and heal. Furthermore, the promotion of positive coping skills in caregivers demonstrates increases in capacity to focus on meeting the needs of ill children, themselves and other relationships, improving overall family functionality. Ronald McDonald House at Stanford keeps families close. Form 990, Part VI, Section B, line 11b The Board retains the services of an independent CPA firm to prepare the organization's Form 990. The Finance Committee subsequently reviews the Form 990 and approves it for submission to the IRS. Copies of the Form 990 and all related schedules are provided to the Board of Directors before it is filed. Form 990, Part VI, Section B, line 12c Directors, officers and key employees are annually required to complete a conflict of interest disclosure statement as a precursor to their service to the House. To protect the integrity of the decision-making process of the House, potential and actual as well as perceived conflicts between the House and the individual's personal, professional and business interests are to be disclosed. Potential conflicts are logged with and monitored by the Secretary of the Board and reviewed by a committee of the Board. Form 990, Part VI, Section B, line 15a The Compensation Committee, composed of independent directors and officers of the House's governing body, meets annually to review and approve the compensation of the Chief Executive Officer. Using input from an outside compensation firm, the committee reviews analysis of similarly qualified persons in functionally comparable positions at similar organizations prepared by an independent compensation consultant. Minutes of the meeting are recorded and filed. This process was last undertaken for fiscal 2016. Form 990, Part VI, Section C, line 19 The House maintains its Articles of Incorporation, By-laws, Conflict of Interest Policy and Audited Financial Statements at its current location: 520 Sand Hill Road in Palo Alto, California. Copies of these documents are available on request for a nominal fee. The most recent Form 990 and audited financial statements are available on the House's website. Form 990, Part X, Line 15: The House and its facilities are located on a leased parcel of land in Palo Alto, California. The terms of the lease require an annual rental payment of $1 through the year 2048. In 2014, the House recognized as revenue and a contribution receivable the difference between the fair rental value of the property and the present value of the stated amount of the lease payments at the date of contribution. The contribution receivable as of December 31, 2016 is as follows: Noncurrent portion of beneficial use of land: $59,073,982 Less: discount to net present value: (38,791,224) Noncurrent portion of contribution receivable, net: 20,282,758 Current portion of beneficial use of land: 1,934,000 Net beneficial use of land: $22,216,758 Form 990, Part X, Line 24 In 2015, the House entered into a credit agreement with the David and Lucile Packard Foundation (the "Credit Agreement"). The Credit Agreement provides for a term loan of up to $10,000,000 to be used to bridge-finance pledge commitments secured by the House to pay costs for constructing the new 3-story, 52,000 square foot facility. Borrowings bear interest at one percent (1%) per year. In 2015, the House used a fair market interest rate of 3.5% to impute discounted interest and recognize a $277,000 contribution and resulting debt discount. The discount is being amortized to interest expense over the term of the note. During 2015, the House was advanced a total of $8,410,000. Principal payments are quantified based on the pledge commitments secured by the House with principal and interest due on November 1 and May 1 of each year. All unpaid accrued interest and principal are due on or before October 16, 2020. During 2016, the House repaid $3,399,000 of the funds previously advanced. Long term debt consists of the following at December 31, 2016: Principal due $4,351,000 Less: unamortized discount (124,000) net amount $4,227,000 Form 990, Part XII, Line 2c: The process has not changed from prior year.